Crystal Telecom’s IPO should encourage local firms to follow suit
Shares of another local company, Crystal Telecom, will soon begin trading on the Rwanda Stock Exchange (RSE) following its Initial Public Offering (IPO) last week.
It is the third local firm to list on RSE.
Some Kenyan giants are also listed on the still young market.
Trading on the stock exchange is a fairly new area that is not widespread among the population, many of whom are lost in the mumbo-jumbo jungle of financial jargon and fear of the unknown. Even those who are aware of the market are held back by the common belief that it is an exclusive domain of the well-to-do. Now Crystal Telecom has begun a mindset change initiative by taking the campaign on the streets.
By directly approaching the common man on the street and opening their eyes on the lucrative market, it has not only opened the eyes of many potential investors, it could also act as an incentive to other potential firms that have been reluctant to list.
There is no doubt that once trading of the new listing goes underway, and the amount of money raised is made public, other local firms will come knocking on the RSE door.That is where the Capital Markets Authority should step in; mobilizing the private sector to take part in the market as a means of raising capital and strengthening the country’s economic health in the process.